What's the Difference Between Necessities and Luxuries

To put it simply, a necessity is an essential need. It’s an indispensable item or service that you can’t live without.  Whereas a luxury on the other hand, is a ‘nice to have’, it’s not crucial. The problem is that people think they can’t live without certain items or certain things. But they can.

The real necessities in life are things like food, water, clothing and shelter. You might think money is a necessity, but the truth is, it isn’t. Money is a tool, nothing else. It allows you to obtain the necessities you need. You exchange it for something you can use.  Money is useless if it does not allow you to do that.

If you challenge yourself to look at your spending, you will undoubtedly find some items or expenditures for which you are torn about where to put them. If you have to think, then they will always be a luxury.

Let’s take a look at three items that are often confused as a necessity.

No, it's not; it’s a luxury. How do we know that? People have survived for centuries without mobile phones, and they still do. The first mobile phone wasn’t even invented until 1973. Now it’s rare not to see someone with a mobile phone. The problem is that it is now considered normal to have a monthly mobile phone contract and an iPhone worth £600 plus.

People with little to their name will even skimp on actual necessities like food to ensure they have a mobile phone. Mobile phones have become a false essential, a ‘necessity’ to stay connected. This is not a natural need, but the power of marketing has convinced us of its necessity.

The truth is, we couldn’t be more disconnected. We are constantly glued to mobile phone screens instead of connecting with the people around us. Take the mobile phone away; you can still communicate with people.

This one isn’t as black and white. By itself, a car is a luxury.  However, if it is the only way to obtain a necessity, then you could say it is 'a necessary means to a necessity’...without it, you may be in trouble.

You might need a car, but do you need a brand-new BMW? The minute you’re looking at taking out car finance, that car becomes a luxury. It’s something you cannot afford without the help of finance.

The costs of taking on car finance and running a car can be significant and can seriously eat into your income. Even if you consider a car a necessary means to a necessity, there's still a thin line between it being a  necessity and straight-up luxury.

They are both luxuries; neither are essential for survival and are detrimental to your health. People who don’t smoke 20 cigarettes a day or drink every night will more than likely be in better health than those who do. These items are pretty much the opposite of a necessity!

The above are just three examples of commonly misjudged luxuries that people claim they cannot live without, but the list goes on.

Today's businesses are incredibly skilled at making you believe a luxury item is necessary. They influence you from something being a want (a luxury) to a need (a necessity).

Take the internet, for example. It has only been around since the early eighties. Yet today, the minute the internet ‘goes down,’ we go into a blind panic! How will I order my Deliveroo?! Gone are the days of picking up the phone, ordering Chinese food, and walking to collect it! We’ve all become accustomed to having anything we want at our fingertips and have been conditioned to feel we need it to survive.

Think about how often you’ve heard someone say: ‘I need a new washing machine, mine is broken’, ‘I need a new TV, mine is old’, ‘I need a new phone, mine has been playing up’. The key word here is need, not want. The truth is none of these are essential for survival. However, they are seen as a social norm that makes life easier or a source of entertainment. They are a want that people have become so dependent on that they genuinely feel like they need them.

The Real Debt Guy is a qualified financial adviser and a UK debt expert. The information in this article is considered to be true and correct at the publication date..